U.S. Stocks Surge to New Highs; Dow Up Triple Digits

Stocks finish in record territory as Dow notches triple-digit gain.

U.S. stocks bounced back in a big way on Thursday, with all three benchmarks rising to new highs led by oil and consumer discretionary companies.

The Dow Jones Industrial Average (NYSEARCA:DIA) surged 205.60 points, or 0.8%, to 25,574.73.

The broader S&P 500 Index (NYSEARCA:SPY) advanced 0.7% to close at 2,766.16, with eight of 11 sectors adding to the rally.

Energy stocks were the biggest gainers, rising 2% as a sector. The consumer discretionary, industrials and materials sectors each added more than 1%. Information technology and financials also put up firm gains.

A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) rose slightly on Thursday, but continued to show underlying calm in the markets. The VIX fear index closed at 9.88 for a gain of 0.6%

In commodities, oil prices briefly rose to three-year highs on Thursday, with Brent barrels climbing above $70 a barrel. The futures contract would later settle at $69.15 a barrel.

In data news, U.S. producer inflation declined unexpectedly in December for the first time in one-and-a-half years amid declining costs and services. The producer price index (PPI) fell 0.1% for an annualized gain of 2.3%.

The Final Word: After a downbeat Wednesday session, stocks roared back in a big way on Thursday. Optimism is likely to grow as fourth-quarter earnings season gets under way.

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